Kenya Pipeline Company (KPC) has received a loan facility of KES35.7m from six banks to build a new oil pipeline V from Mombasa –Nairobi. The 450km ultra modern pipeline will replace the old pipeline that has served for years. The six banks include CFC Stanbic, Cooperative, Commercial Bank of Africa, Standard Chartered, Rand Merchant Bank and Citibank. The loan signed under competitive terms has a 10-year repayment period whereby 30 per cent of its financing will be internally sourced from KPC.


Speaking at KPC offices, Ag. Managing Director, Flora Okoth said that the project is estimated to be complete in 18 months from contract date, July 1, 2014. The contractor, Zakhem International is on the ground and has already procured materials needed for the project.  “Once the project is complete we will be transporting approximately 4,000 trucks per day off Mombasa-Nairobi,” Akoth added.

In the new project, the scope of work includes: installation of new pumps at Changamwe, Maungu, Mtito Andei and Sultan Hamud stations as well as two booster pumps at Kipevu station. The Nairobi Terminal and Kipevu pump stations will also be upgraded with the modern pipeline facilities to handle the larger product volumes in these critical locations.

Once line V is complete, product flow will increase from the current 730,000 litres per hour to 1 million litres hence doing away with stock outs. It will also create job opportunities for both skilled and unskilled Kenyans as well as increase revenue monitoring when it comes to transportation of the petroleum products.
Additionally, the oil company is seeking to expand its geographical presence by partnering with County Governments for its pipeline expansion and storage strategy across the country. Similarly, the company has started constructing a bigger diameter pipeline from Sinendet in Nakuru to Kisumu to increase product volumes by an additional of 360,000 litres per hour. The company is also upgrading its loading and storage facilities to meet increased demand. In Eldoret, construction of a modern bottom truck-loading facility is underway.

Present during the signing was John Ngumi, KPC Chairman, board members and representatives from the respective banks.

Leave a Reply